How Lenders Stand to Benefit From Uber’s Platform
Despite profitability concerns outlined in Uber Technologies’ S-1 filing, lenders could benefit from partnering with the mobility company, Grayson Brulte, president of Brulte & Company, told Auto Finance News. For instance, lenders might allow Uber drivers to rent their off-lease inventory.
“Uber is not a ride-sharing company or an autonomous vehicle company or a food delivery company,” Brulte said. “Uber is a platform. And if you’re investing in Uber, you’re betting on the platform.”
Lenders can benefit from Uber’s growing platform by leveraging the assets on their balance sheet to create returns outside of remarketing at auction. “The strength of an auto lender is the balance sheet, not its platform,” Brulte said.
“The best way to create that return is to strike deals with platforms where you can put your vehicles that are off-lease to use so those vehicles are generating revenue.”
Uber filed its initial public offering prospectus with the Securities Exchange Commission last week, less than a month after the stock of rival Lyft began trading on the N.Y. Stock Exchange. Uber’s IPO is expected to assign a $100 billion valuation to the mobility platform. Comparatively, Lyft was valued at $24 billion in its March 29 IPO. Lyft shares have been trading around $56 each, down 22% from their opening day price.